After a lot of speculation, the Zimbabwe Energy Regulatory Authority has finally hiked (adjusted if you prefer their term) the prices of both diesel and petrol upwards. The pump price for both fuels had remained constant for almost three weeks. The new prices are already in effect.

Diesel which was selling for $15.64 is now selling for $17.47 and petrol which was being sold at $14.97 is now being sold for $16.75. Both prices mean that the price of fuel has gone up by just under $2. That’s not the only interesting thing about the latest prices, however.

DescriptionDiesel ZWL/LitrePetrol ZWL/Litre
FOB$0.5905 (USD)$0.5398 (USD)
Exchange Rate$15.5711$15.5711
Duty (ZIMRA Exchange Rate-15.5711)$4.1695$4.3350
Oil Company Margin$0.9242$0.8859
Dealer Margin$1.1429$1.0955
Maximum Pump Price$17.47$16.75

For the first time in a while, the interbank rate is applied to compute the FOB price in Zimbabwean dollars from USD. Prior to this the government always insisted on a lower rate so as not to shock the market.

Given these new prices expect another round of price increases as businesses adjust to the new reality.